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Europe shares close higher as oil prices rise; Fed watched

European stocks closed higher on Monday as investors cheered a rally in oil markets and awaited the start of the Federal Reserve's policy meeting this week.

The U.K.'s FTSE 100 and the French CAC 40 closed roughly 1.5 percent up, while the German DAX ended just under 1 percent higher.


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IBEX 35
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The pan-European Euro Stoxx 600 Index ended just over 1 percent higher, with all sectors and major bourses in positive territory.

Oil markets were in focus, with prices rising after Venezuela said that OPEC and non-OPEC countries were close to reaching an output stabilizing deal, Reuters reported.

When European stock markets closed, light crude futures for October were trading 2.4 percent higher at $44.05 per barrel, having closed the previous session at $43.03.

Investors were also looking ahead to a meeting of the U.S. Federal Reserve. The central bank starts a two-day meeting on Tuesday but the chances of a rate hike this month are slim following a deluge of disappointing U.S. data.

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In Germany, Angela Merkel's CDU party suffered its second electoral blow in two weeks on Sunday, with support slumping in a Berlin state vote that some saw as a rejection of the Chancellor's open-door refugee policy.

In other news, Russia's ruling United Party comfortably won the country's parliamentary elections that took place on Sunday.

Mining stocks up

In stock news, basic resources surged by over 3 percent, led by Anglo American. The U.K.-listed miner closed around 5.7 percent higher, helped by an upgrade price target from Credit Suisse.

Meanwhile, shares of Weir Group closed 1.7 percent up after an analyst upgrade from JP Morgan.

Rolls Royce announced Sunday that it would be cutting 200 management jobs as part of its restructuring; share closed up 1.6 percent.

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